Fed Cuts Benchmark Rate Half Point, Seeking to Forestall Recession in U.S. - "The Federal Reserve lowered its benchmark interest rate by a half point to 4.75 percent, the first cut in four years, to protect the U.S. from sinking into a recession sparked by fallout from the housing-market collapse. 'Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets,' the Federal Open Market Committee said in a statement after meeting today in Washington. The central bank will 'act as needed to foster price stability and sustainable economic growth.' Stocks surged, two-year Treasury notes rose and the dollar fell to a record low against the euro. The larger-than-forecast reduction suggests Chairman Ben S. Bernanke is prepared to leave himself open to criticism that he's rescuing investors from bad decisions for the sake of saving the six-year expansion."

U.S. Producer Prices Drop More Than Forecast; Foreclosures on Homes Double - "The 1.4 percent decrease, the biggest since October, followed a 0.6 percent increase in July, the Labor Department said today in Washington. So-called core prices, which exclude fuel and food costs, rose 0.2 percent after a 0.1 percent gain the month before. Slower inflation gave policy makers room to cut their benchmark rate today in an effort to sustain the expansion in the face of a housing recession. A drop in fuel expenses pushed prices down in August and cooling economic growth will continue to restrain raw-material costs, economists said."

September 14th, 2007

U.S. Retail Sales, Output Rise Less Than Forecast, Adding to Rate-Cut Case - "The 0.3 percent increase in sales during August followed a revised 0.5 percent gain in July, the Commerce Department said today in Washington. Purchases excluding automobiles unexpectedly fell 0.4 percent. Production gained 0.2 percent, with factory output declining for the first time since February. While a report from the University of Michigan and Reuters Group Plc showed consumer confidence increased, their sentiment index remained near the lowest level in a year. Treasury notes rallied after the retail sales and production reports, before losing the gains."

September 13th, 2007

Greenspan Says He Didn't Foresee Credit Rout, Endorses Bernanke, CBS Says - "Current Fed Chairman Ben S. Bernanke 'is doing an excellent job,' Greenspan said in an interview on the 60 Minutes program, according to excerpts e-mailed by CBS today. The show is scheduled to air on Sept. 16, a day before the publication of Greenspan's book, 'The Age of Turbulence.' The remarks come amid criticism among some investors that Bernanke has failed to be as forceful as his predecessor in responding to financial turmoil. Greenspan in 1998 cut interest rates three times after a Russian debt default rippled through global markets. Bernanke's Fed has refrained from lowering its benchmark so far, relying on other tools to provide liquidity."

Commercial-Paper Market Decline in U.S. Slows as Concerns Over Credit Ease - "U.S. stocks rose and Treasuries fell after the Federal Reserve reported short-term debt dropped by $8.2 billion, compared with a decline of $31.3 billion a week earlier. That coincided with Countrywide Financial Corp. obtaining new financing and banks finding buyers for loans to fund Kohlberg Kravis Roberts & Co.'s buyout of Alliance Boots. Issuers with the biggest chance of default had stopped trying to sell commercial paper, rekindling appetite for short- term debt, said Tony Crescenzi, chief bond market strategist at Miller Tabak & Co. in New York. 'Investors have already pushed out the weakest issuers,' Crescenzi said in an e-mail. 'The commercial paper that remains is a relatively more respected crop.'"

About Me

I'm just a normal guy who was trying for medical school and ended up in finance. I'm not quite sure how I got here, but there aren't alot of hippie tree-huggers in finance, so I might stick around for a while. Other than that I'm spending time with my wife and dog, working out at the gym, sports (baseball mostly, but I'll settle for basketball and football), reading, music, and more. In the end, my free time isn't very free, so I'll probably do most of my posting from work. Hopefully they think all that typing is me actually working.

Wednesday, August 22, 2007

More than 10,000 terrorists killed or captured since surge began

Hugh Hewitt's been replaying the speech the president made earlier today in Kansas City. The entire MSM is hammering Dubya's for his comparison of Iraq to WWII and Vietnam, but they're missing a key bit of info (or conversely you could say that once again the administration isn't communicating our successes in Iraq again): More than 10,000 terrorists killed or captured since January.

There is one group of people who understand the stakes, understand as well as any expert, anybody in America -- those are the men and women in uniform. Through nearly six years of war, they have performed magnificently. (Applause.) Day after day, hour after hour, they keep the pressure on the enemy that would do our citizens harm. They've overthrown two of the most brutal tyrannies of the world, and liberated more than 50 million citizens. (Applause.)

In Iraq, our troops are taking the fight to the extremists and radicals and murderers all throughout the country. Our troops have killed or captured an average of more than 1,500 al Qaeda terrorists and other extremists every month since January of this year. (Applause.) We're in the fight. Today our troops are carrying out a surge that is helping bring former Sunni insurgents into the fight against the extremists and radicals, into the fight against al Qaeda, into the fight against the enemy that would do us harm. They're clearing out the terrorists out of population centers, they're giving families in liberated Iraqi cities a look at a decent and hopeful life.

Our troops are seeing this progress that is being made on the ground. And as they take the initiative from the enemy, they have a question: Will their elected leaders in Washington pull the rug out from under them just as they're gaining momentum and changing the dynamic on the ground in Iraq? Here's my answer is clear: We'll support our troops, we'll support our commanders, and we will give them everything they need to succeed. (Applause.)